_____ Which statement is correct concerning the equity method?
A) It is used exclusively instead of consolidation.
B) It is based on the historical cost concept.
C) It does not have a built-in self-checking feature in the consolidation process.
D) Cash dividends declared by the subsidiary are always treated as a partial liquidation (reduction) of the parent's investment in the subsidiary.
E) None of the above.
Correct Answer:
Verified
Q36: Under FAS 94, parent-company-only statements must be
Q37: When parent-company-only statements are presented in the
Q38: Parent-company-only statements are required by the Securities
Q39: Parent-company-only statements are required by the Securities
Q40: _ Which of the following statements is
Q42: _ Under the equity method, which account
Q43: _ Under the cost method, which account
Q44: _ The Dividend Income account would be
Q45: _ When a parent uses the equity
Q46: _ When a parent uses the cost
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